Puts & Calls

[Terry D EA]

I am understanding that the fees a broker would charge for puts and calls are normally added to the basis the stock transaction. I have a client that has a list of puts and calls that shows the purchase price, selling price, dispostion, and gains or losses. The cost column says "Costs or Other Basis". The account management fees are listed at 3800.00. Is this fee added to the basis or deductible under miscelleanous deductions on Sch A?

[JRS]

I am understanding that the fees a broker would charge for puts and calls are normally added to the basis the stock transaction. I have a client that has a list of puts and calls that shows the purchase price, selling price, dispostion, and gains or losses. The cost column says "Costs or Other Basis". The account management fees are listed at 3800.00. Is this fee added to the basis or deductible under miscelleanous deductions on Sch A?

They are a Schedule A deduction, though my clients' would rather see them added to the cost.

[Terry D EA]

Thanks, that is where I have put the fees initially. If there were a specific amount designated for handling the puts and call, then I would add those amounts to the basis.